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One-third of businesses point to lack of tech talent as main barrier to growth, says CPA Australia.
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Skill shortage turning small businesses into ‘digital laggards’
16 August 2022
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9 minute read
Businesses keen to drive expansion through technology have been hamstrung by the skills shortage, according to CPA Australia.
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One in three businesses believed the talent drought was the main issue when trying to gain digital ground, the Business Technology Survey 2022 found.
CPA Australia general manager of media and content Dr Jane Rennie said businesses were struggling to add staff with the right skills.
“Businesses which fail to attract staff with digital skills are statistically more likely to be underperformers,” said Dr Rennie.
While firms like the big four can outsource, smaller businesses are being left behind.
“Big businesses can put their financial muscle to work tackling the skills shortage by hiring contractors and offshore talent, outsourcing, and leveraging existing relationships with technology vendors,” she said.
“Small businesses are clearly struggling to keep up – one in five took no action to address the talent shortage.”
CPA Australia’s survey asked 820 professionals from Australia, China, Hong Kong, Malaysia, New Zealand, Singapore and Vietnam about the impact of technology.
It found that thanks to the skills shortage, only 46 per cent of Australian small businesses had a digital transformation strategy and Dr Rennie said it was time for the government to step in.
She said improving digital training of small-business staff was one way to deal with the skills shortage.
“Australia’s small businesses are digital laggards among the Asia-Pacific,” she said. “There is a global shortage of talent particularly in the accounting and technology sectors.
“One way to offset this lack of skills is to enhance the knowledge and capability of existing employees.
“We need government support to improve small businesses’ technology training.”
She said that businesses that experienced growth over the past year had used technology more often than those that did not, while those that failed to grow also neglected their workforce’s digital skills.
Despite the shortage, the survey found that 43 per cent of Australian businesses were planning to increase investment or upgrade their technology with 28 per cent planning an increase in technology training for employees.
“It’s heartening to see businesses plan to invest in technology but ensuring employees have the skills to use these tools needs to be a bigger priority,” said Dr Rennie.
“As organisations around the world grapple with complex global issues including the skills shortage, technology is crucial for business success.
“Organisations that prioritise technology and digital skills are best placed to deliver additional value and handle future challenges.”
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